Consideration for Net Profits Payments Sample Clauses
The Consideration for Net Profits Payments clause defines the obligation of one party to pay another a portion of net profits generated from a specific project, asset, or business activity. Typically, this clause outlines how net profits are calculated, the frequency of payments, and any deductions or adjustments that may apply before determining the payable amount. Its core practical function is to ensure that the recipient shares in the financial success of the venture, aligning interests and providing a clear mechanism for profit distribution.
Consideration for Net Profits Payments. In consideration of all rights granted, and information provided by CDS to Alimera, and the amount of Direct Development Costs paid by CDS under this Agreement with respect to Product(s), the Parties agree that the amount of Net Profits Payments set forth in Section 6.5 reflects the value of all such rights granted, information provided and costs paid, and such Net Profits Payments shall be paid whether or not such Product is covered by a Valid Claim in the CDS Patent Rights, and whether or not such Net Profits Payments under this Section 6.5 extend beyond the term of any CDS Patent Rights containing Valid Claims covering such Product. For the sake of clarity, the Parties have agreed not to decrease the percentage of Net Profits to be paid by Alimera to CDS, even if the Product is no longer covered by a Valid Claim in the CDS Patent Rights, in view of substantial CDS Know-How provided in the development of Product. Moreover, the Net Profits value itself will at all times reflect the then-current value of the intellectual property licensed hereunder and will naturally reflect any loss of the CDS Patent Rights.
Consideration for Net Profits Payments. In consideration of all rights granted, and information provided by CDS to Alimera, and the amount of Direct Development Costs paid by CDS under this Agreement with respect to Product(s), the Parties agree that the amount of Net Profits Payments set forth in Section 6.5 reflects the value of all such rights granted, information provided and costs paid, and such Net Profits Payments shall be paid whether or not such Product is covered by a Valid Claim in the CDS Patent Rights, and whether or not such Net Profits Payments under this Section 6.5 extend beyond the term of any CDS Patent Rights containing Valid Claims covering such Product. [*]-INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED.